Lundin Doubles Year-End Losses in 2015
Lundin posted a loss of $866.3 million in 2015, which was more than double the $431.9 million loss registered by the company in 2014.
The loss was mainly driven by lower oil prices, exploration and impairment costs and higher finance costs as a result of a strong US dollar, according to Lundin’s year-end report. Revenue in 2015 amounted to $569.3 million, compared to $785.2 million in 2014, and EBITDA for the year almost halved to $384.7 million from $671.3 million in 2014.
Production in 2015 rose to 32,300 barrels of oil equivalent per day from 23,800 boepd the previous year. The majority of the company’s oil output came from Norway, where Lundin holds interests in the Alvheim, Volund, Boyla, Brynhild, Edvard Grief and Gaupe fields. Lundin’s production guidance in 2016 has doubled to between 60,000 and 70,000 boepd.
Commenting on the current oil price environment, Lundin President and CEO Alex Schneiter said in a company statement:
“We continue to witness extreme volatility in oil prices with falls to levels not seen in over a decade and it is clear to me that the battle for market share is approaching its final conclusion. At current price levels I believe a rebalancing of supply and demand is inevitable and likely to take place during the second half of 2016 as higher cost producers are forced to curtail production levels.”
Outlining the need for efficiency in the current industry climate, Schneiter said in a statement in Lundin’s year-end report:
“Our 2016 objectives are very clear. First of all, we will maximize our existing operational efficiency to establish a solid foundation of strong cash flow for the next growth phase of the company. Capital and operational efficiency is in the forefront of our minds. We are also embracing the low oil price environment as a time of opportunity when it comes to our operations.
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